Materials Management & Business Ettiquette

Materials Management & Business Etiquette
Thank you and wishing you all the best for your forthcoming exams.
Your score: 32% (91 points out of 280)
Question #1 (1 point)
Product life cycles for many products are ________, forcing companies to not only
become ________ in design but also to communicate changes and needs to
suppliers and distributors.
Your answer:
growing rapidly, less flexible Wrong Incorrect
Correct answer:
shrinking rapidly, more flexible
All portions of the material production from __________ to ___________ are
considered to be a linked chain under the supply chain concept.
Your answer:
raw material, final customer Wrong Correct
To get the most profit, a company should:
Your answer:
Provide the lowest inventory investment Wrong Correct
Finance must keep investment and costs low. This can be done by:
Your answer:
Increasing inventory so inventory investment is at a maximum Wrong Incorrect
Correct answer:
Decreasing the number of plants and warehouses
Today the concepts of ______ manufacturing stress the need to supply customers
with what they want when they want it and to keep inventories at a _______.
Your answer:
Six Sigma, maximum Wrong Incorrect
Correct answer:
TQM, maximum
The concept of having ____ department(s) responsible for the flow of materials,
from supplier through production to consumer, is relatively new.
Your answer:
functional Wrong Incorrect
Correct answer:
one
Materials management is also called:
Your answer:
Both of the above Wrong Correct
Materials management is a coordinating function responsible for planning and
controlling materials flow. Its objective(s) is/are:
Your answer:
Maximize the use of the firm's resources Wrong Incorrect
Correct answer:
Both of the above
_______ and ______ are costs that increase or decrease with the quantity sold.
Your answer:
Indirect labor, indirect material Wrong Incorrect
Correct answer:
Direct labor, direct material
Inventory not only makes up a portion of the cost of goods sold but has to be
purchased at the beginning of production to be processed into finished goods.
This type of inventory is called _____________.
Your answer:
none of the above Wrong Incorrect
Correct answer:
work-in-process
The wealth of a country is measured by its gross national productthe output of
goods and services produced by the nation in a given time.
Your answer:
False Wrong Incorrect
Correct answer:
True
There are few stages between the extraction of resource material and the final
consumer product in manufacturing.
Your answer:
False Wrong Correct
Manufacturing companies face competition from throughout the world. They may
find foreign competition selling in their markets even though they themselves
may not be selling in foreign markets.
Your answer:
True Wrong Correct
Worldwide communications are slow, ineffective, and often expensive.
Your answer:
False Wrong Correct
Competitive characteristics persuade a company's customers to choose its
products or services and are termed "order qualifiers."
Your answer:
False Wrong Correct
From the supplier's perspective, delivery lead time is the time from receipt of an
order to the delivery of the product
Your answer:
Correct answer:
True
Raw materials flow into a manufacturing company from a physical supply
system, are processed by the physical distribution system, and finally finished
goods are distributed by manufacturing to end consumers.
Your answer:
False Wrong Correct
In the past, many company managers placed most of their attention on the
issues that were internal to their companies
Your answer:
Correct answer:
True
To manage a supply chain, one must not only understand the network of
suppliers and customers along the chain but must also try to efficiently plan
material and information flows along each chain to minimize cost efficiency,
effectiveness, delivery, and flexibility.
Your answer:
True Wrong Incorrect
Correct answer:
False
Production must keep its operating costs as low as possible
Your answer:
Correct answer:
True
Capacity is related to what products are needed, how many are needed, and
when they are needed.
Your answer:
Correct answer:
False
In the long and short run, manufacturing must devise plans to balance the
demands of the marketplace with its resources and capacity
Your answer:
Correct answer:
True
The production plan is a statement of the major goals and objectives that the
company expects to achieve over the next two to ten years or more
Your answer:
Correct answer:
False
The development of the strategic business plan is the responsibility of marketing
Your answer:
False Wrong Correct
While the strategic business plan is updated annually, sales and operations
planning is a dynamic process in which the company plans are updated on a
regular basis, at least monthly
Your answer:
True Wrong Correct
The strategic business plan incorporates the plans of marketing, finance, and
production
Your answer:
Correct answer:
True
ERP is similar to the MRP II system except it does not dwell on manufacturing but
includes the whole enterprise in planning
Your answer:
Correct answer:
True
Manufacturing is concerned more with the demand for the product than with the
demand for the specific kinds of capacity needed to make the products.
Your answer:
Correct answer:
False
The disadvantage of the chase strategy is that inventories can be kept to a
minimum
Your answer:
Correct answer:
False
In a make-to-order environment, products are made and put into inventory
before an order is received from a customer
Your answer:
False Wrong Correct
A good planning system must consider:
Your answer:
What does it take to make it? Wrong Incorrect
Correct answer:
All of the above
_______ is the capability of manufacturing to produce goods and services.
Your answer:
Planning Wrong Incorrect
Correct answer:
Capacity
________ is responsible for analyzing the marketplace and deciding the firm's
response, the markets to be served, the products supplied, and desired levels of
customer service.
Your answer:
Finance Wrong Incorrect
Correct answer:
Marketing
______ must satisfy the demands of the marketplace. It does so by using plants,
machinery, equipment, labor, and materials as efficiently as possible.
Your answer:
Production Wrong Correct
The _____________________ is a plan for the production of individual end items.
Your answer:
MRP II Wrong Incorrect
Correct answer:
MPS
Purchasing and ___________ represent the implementation and control phase of
the production planning and control system.
Your answer:
material requirements planning (MRP) Wrong Incorrect
Correct answer:
production activity control (PAC)
A _________ strategy means producing the amounts demanded at any given time.
Your answer:
TQM Wrong Incorrect

Correct answer:
chase
In the _____________ environment, several product options exist (e.g.,
automobiles) and the customer is not willing to wait until the product is made.
Therefore manufacturers produce and stock standard component parts.
Your answer:
make-to-order Wrong Incorrect
Correct answer:
assemble-to-order
____________ is the first step in a manufacturing planning and control system.
Your answer:
Maintaining the required inventory levels Wrong Incorrect
Correct answer:
Production planning
The cost of a _________ that is too large equals the cost of turning away business.
Your answer:
production plan Wrong Incorrect
Correct answer:
backlog
While the production plan deals in end items, the MRP works with families of
products.
Your answer:
Correct answer:
False
The MPS is a plan for marketing. It reflects the needs of the marketplace and the
capacity of manufacturing and forms a priority plan for marketing to follow.
Your answer:
Correct answer:
False
Once the preliminary master production schedules are made, they must be
checked against the available capacity.
Your answer:
Correct answer:
True
Rough-cut capacity planning checks whether critical resources are available to
support the preliminary master production schedule.
Your answer:
True Wrong Correct
If available capacity is less than the required capacity, the MRP is workable.
Your answer:
True Wrong Correct
The MPS should represent as efficiently as possible what manufacturing will
make.
Your answer:
True Wrong Correct
Televisions and other consumer products are examples of items assembled in a
make-to-order environment.
Your answer:
Correct answer:
False
The MPS is a plan for specific end items or "buildable" components that
manufacturing expects to make over some time in the future.
Your answer:
True Wrong Correct
In a make-to-order environment, customer orders are satisfied from inventory.
Your answer:
False Wrong Correct
Changes that are near in the planning horizon can be made with little or no cost
or disruption to manufacturing.
Your answer:
False Wrong Correct
The MRP forms a vital link between sales and production as follows:
Your answer:
The MRP makes possible valid order promises. Wrong Incorrect
Correct answer:
All of the above
The information needed to develop an MPR includes:
Your answer:
Actual orders received from customers and for stock replenishments. Wrong
Incorrect
Correct answer:
All of the above
A schedule is satisfactory when:
Your answer:
Capacity is greater than the production plan Wrong Incorrect
Correct answer:
Capacity is consistent with the production plan
The objectives in developing an MRP include:

Your answer:
To make the best use of material, labor, and equipment Wrong Incorrect
Correct answer:
All of the above
To reach its objectives, the master production schedule must:
Your answer:
Satisfy customer demand Wrong Correct
The first step in preparing an MPS is:
Your answer:
Resolve differences between the preliminary MPS and the capacity available.
Wrong Incorrect
Correct answer:
Develop a preliminary MRP.
Critical resources in rough-cut capacity planning include:
Your answer:
Bottle-neck operations Wrong Incorrect
Correct answer:
All of the above
It is possible to increase the available capacity by:
Your answer:
Limiting subcontracting Wrong Incorrect
Correct answer:
Scheduling overtime
In the __________________ environment, many different end items are made from a
small number of components.
Your answer:
assembly-to-order Wrong Incorrect
Correct answer:
make-to-order
In the __________________ environment, many end items can be made from
combinations of basic components and subassemblies.
Your answer:
make-to-order Wrong Incorrect
Correct answer:
assembly-to-order
Independent demand is not related to the demand for any other product.
Your answer:
False Wrong Correct
Master production schedule items are dependent demand items.
Your answer:
False Wrong Correct
Materials requirement planning has two major objectives: determine
requirements and keep priorities current.
Your answer:
True Wrong Correct
The material requirements plan drives the master production schedule.
Your answer:
False Wrong Correct
A major input to the MRP system is inventory.
Your answer:
True Wrong Correct
Service parts are replacement parts needed to repair a broken component and
are determined from the bill of material.
Your answer:
True Wrong Correct
The purpose of material requirements planning is to determine the components
needed, quantities, and due dates so items in the master production schedule
are made on time.
Your answer:
Correct answer:
True
Open orders are orders placed on manufacturing or on a vendor and represent a
commitment to make or buy.
Your answer:
Correct answer:
False
The process of collecting the gross requirements and netting can be simplified by
using low-level codes.
Your answer:
True Wrong Correct
Scrap is usually stated as a scrap allowance, such as 10% scrap.
Your answer:
Correct answer:
True
The sides, ends, legs, and tops of tables are ________ demand items.
Your answer:
forecast Wrong Incorrect
Correct answer:
dependent
Since _______ demand is not related to the demand for any other assemblies or
products, it must be ___________.
Your answer:
independent, forecast Wrong Incorrect
Correct answer:
independent, calculated
All major inputs to the MRP system include:
Your answer:
Master production schedule, inventory records, and bills of material Wrong
Incorrect
Correct answer:
Master production schedule and bill of material
The ___________ is a statement of which end items are to be produced, their
quantity, and the dates they are to be completed.
Your answer:
inventory record Wrong Incorrect
Correct answer:
MPS
The bill of materials shows all the parts required to make __________.
Your answer:
the MPR Wrong Incorrect
Correct answer:
one item
A _________ is used when companies usually make more than one product and
the same components are often used in several products.
Your answer:
product tree Wrong Incorrect
Correct answer:
multiple bill
A(n) _____________ lists all the parts needed to make one complete assembly.
Your answer:
indented bill Wrong Incorrect
Correct answer:
summarized parts list
___________ is the process of multiplying the requirements by the usage quantity
and recording the appropriate requirements throughout the product tree.
Your answer:
Offsetting Wrong Incorrect
Correct answer:
Exploding
_______________ means that authorization is given to purchasing to buy the
necessary material or to manufacturing to make the component.
Your answer:
Scheduled receipts Wrong Incorrect
Correct answer:
Releasing an order
____________ are orders placed on manufacturing or on a vendor and represent a
commitment to make or buy.
Your answer:
Releasing orders Wrong Incorrect
Correct answer:
Scheduled receipts
Capacity is the amount of work that can be done in a specified time period.
Your answer:
True Wrong Correct

Capacity management is the process of monitoring production output, comparing
it with capacity plans, and taking corrective action when needed.
Your answer:
Correct answer:
False
Rough-cut capacity planning is directly linked to the material requirements plan.
Your answer:
Correct answer:
False
While paper mills measure capacity in tons of paper or automobile
manufacturers in numbers of cars, a good, common unit may not exist for a
variety of products.
Your answer:
Correct answer:
True
The percentage of time that the work center is active compared to the available
time is call rated capacity.
Your answer:
False Wrong Correct
Capacity requirements are generated by the priority planning system and involve
translating priorities, given in units of product or some common unit, into hours
of work required at each work center in each time period.
Your answer:
Correct answer:
True

The load on a work center is the difference between the planned and actual
orders to be run in a specified period.
Your answer:
Correct answer:
False
The work center load report shows future capacity requirements based on
released and planned orders for each time period of the plan.
Your answer:
True Wrong Correct
There are two ways of balancing capacity available and load: alter the load or
change the capacity available.
Your answer:
True Wrong Correct
Capacity planning is concerned with translating the priority plan into the hours of
capacity required in manufacturing to make the times in the priority plan as well
as with methods of making that capacity available.
Your answer:
True Wrong Correct
______________involves long-range capacity resource requirements and is directly
linked to production planning.
Your answer:
Resource planning Wrong Correct
Resource planning involves changes in staffing, capital equipment, product
design, or other facilities that take a ________ time to ___________.
Your answer:
long, acquire and eliminate Wrong Correct
The inputs needed for a CRP include:

Your answer:
Planned order released Wrong Incorrect
Correct answer:
All of the above
The Gregorian calendar:
Your answer:
Has an equal number of days per month Wrong Incorrect
Correct answer:
Presents problems for manufacturing planning and control
Capacity needs to be measured:
Your answer:
At the work center level Wrong Incorrect
Correct answer:
All of the above
_____________ is the number of hours a work center can be used.
Your answer:
Rated capacity Wrong Incorrect
Correct answer:
Available hours
Rated capacity is calculated by taking into account the work center ___________.
Your answer:
efficiency and production Wrong Incorrect
Correct answer:
utilization and efficiency
The term _____________means that the work center is overloaded and the term
________________ means the work center is underloaded.
Your answer:
utilization, undercapacity Wrong Incorrect
Correct answer:
overcapacity, undercapacity
In the _________ run, capacity ________ be adjusted.
Your answer:
short, cannot Wrong Incorrect
Correct answer:
short, can
If the workload in a manufacturing plan cannot be changed, an alternative is to:
Your answer:
Schedule overtime Wrong Incorrect
Correct answer:
All of the above All of the above All of the above
Production activity control (PAC) is responsible for executing the master
production schedule and the materials requirements plan.
Your answer:
True Wrong Correct
Flow manufacturing is characterized by many variations in product design,
process requirements, and other quantities.
Your answer:
Correct answer:
False
Intermittent manufacturing usually involves the creation of one or a small
number of units.
Your answer:
Correct answer:
False
Infinite loading assumes there is a defined limit to available capacity to any
work-station.
Your answer:
Correct answer:
False
In intermittent manufacturing, it is almost impossible to balance the available
capacities of the various workstations with the demand for their capacity.
Your answer:
True Wrong Correct
Orders that have tooling, material, and capacity have a good chance of being
completed on time and can be released to the shop floor.
Your answer:
True Wrong Correct
Production activity control must balance the flow of work to and from different
work centers. This is to ensure that queue, work-in-process, and lead time are
controlled.
Your answer:
Correct answer:
True
Production reporting provides feedback of what is actually happening on the
plant floor.
Your answer:
Correct answer:
True

Drum-Buffer-Rope describes how the JIT works by setting an overall pace of
material flow, ensuring that bottlenecks never run out of material, and linking
the output of one work center to that of another.
Your answer:
Correct answer:
False
If PAC is performing its functions, the company should be able to meet delivery
dates, utilize labor and equipment efficiently, and keep inventory levels down.
Your answer:
True Wrong Correct
______________is concerned with the production of high-volume standard products.
Your answer:
All of the above Wrong Incorrect
Correct answer:
Flow manufacturing
Routings are fixed and work centers are arranged according to the routing in
________________.
Your answer:
flow manufacturing Wrong Correct
Flow of work through the shop is varied and depends on the design of a
particular product. In _____________, as orders are processed, they will take more
time at one workstation than at another. Thus, the work flow is not balanced.
Your answer:
flow manufacturing Wrong Incorrect
Correct answer:
intermittent manufacturing
An example of project manufacturing is:
Your answer:
Automobiles Wrong Incorrect
Correct answer:
Large shipbuilding
The __________________ contains a list of the single-level components and
quantities needed to assemble a parent item.
Your answer:
item master file Wrong Incorrect
Correct answer:
product structure file (bill of material file)
The _________________ collects all of the relevant data on a work center.
Your answer:
Correct answer:
work center master file
Each active manufacturing order has a record in the _____________________.
Your answer:
Correct answer:
shop order master file
_________ is the amount of time the job is waiting at a work center before an
operation begins.
Your answer:
Wait time Wrong Incorrect
Correct answer:
Queue time
The transit time between work centers is ____________.
Your answer:
run time Wrong Incorrect

Correct answer:
move time
_______________ is a method of reducing manufacturing lead time. The order is
split into two or more lots and run on two or more machines simultaneously.
Your answer:
Operation splitting Wrong Correct
Choosing the right material requires input from the marketing, engineering,
manufacturing, and purchasing departments.
Your answer:
True Wrong Correct
Manufacturing is responsible for establishing the flow of materials into the firm,
following up with the supplier, and expediting delivery.
Your answer:
False Wrong Correct
When the goods are received, the receiving department inspects the goods to be
sure the correct ones have been sent, are in the right quantity, and have not
been damaged in transit.
Your answer:
Correct answer:
True
Functional specifications are concerned with the end use of the item and what
the item is expected to do.
Your answer:
Correct answer:
True
Buyer specifications describe in detail the exact configuration of the parts and
the assembly.
Your answer:
False Wrong Correct
The objective of purchasing is to get all the right things together: quality,
quantity, delivery and price.
Your answer:
True Wrong Correct
The ranking method for finding a supplier is an attempt to quantify those things
that are not quantified by nature and attempts to put figures on subjective
judgment.
Your answer:
True Wrong Correct
Variable costs are costs incurred regardless of the volume of sales.
Your answer:
False Wrong Correct
Price negotiation occurs when a buyer compares the price of a product from
various suppliers and simply chooses the lowest price.
Your answer:
Correct answer:
False
As computers and software, such as ERP, have become more powerful and
effective, information flows have become more challenging and it has become
more difficult to handle large amounts of data.
Your answer:
False Wrong Correct
On average, manufacturing firms spend about ________ of their sales dollars on
the purchase of raw materials, components, and supplies.
Your answer:
30% Wrong Incorrect
Correct answer:
50%
The objectives of purchasing include:
Your answer:
Ensuring the best possible service and prompt delivery by the supplier Wrong
Correct
A ________________ is a legal offer to purchase.
Your answer:
supplier's invoice Wrong Incorrect
Correct answer:
purchase order
When the supplier's invoice is received, the following should agree:
Your answer:
The receiving report, the quotation, and the material specification Wrong
Incorrect
Correct answer:
The purchase order, the receiving report, and the invoice
In purchasing an item or service from a supplier, which factor is not included
when specifications are being developed?
Your answer:
Price requirements Wrong Incorrect
Correct answer:
Delivery requirement
________ is the systematic use of techniques that identify a required function,
establish a value for that function, and finally provide the function at the lowest
overall cost.
Your answer:
Functional analysis Wrong Incorrect

Correct answer:
Value analysis
_______ is most often used in wholesale or retail businesses but is also used
extensively in manufacturing.
Your answer:
Description by buyer Wrong Incorrect
Correct answer:
Description by brand
___________specifications and standard specifications are the two major sources
of specifications or ways of describing a product.
Your answer:
Buyer Wrong Correct
______ sourcing is the use of more than one supplier for an item.
Your answer:
Multiple Wrong Correct
Materials such as copper, coal, wheat, meat, and metals are:
Your answer:
Made-to-order items Wrong Incorrect
Correct answer:
Commodities
Inventory management is responsible for planning and controlling inventory from
the raw material stage to the customer.
Your answer:
True Wrong Correct
Forecasting is concerned with overall inventory, master planning with end items,
and material requirements planning with component parts and raw material.
Your answer:
False Wrong Correct
Inventory is managed not only at the aggregate level but also at the item level.
Your answer:
false Wrong Incorrect
Correct answer:
True
If supply met demand exactly, there would still be a need for inventory
Your answer:
False Wrong Correct
Fluctuation inventories exist because of the time needed to move goods from
one location to another such as from a plant to a distribution center or a
customer.
Your answer:
Correct answer:
False
MROs are items used to support general operations and maintenance but that do
not directly become part of a product.
Your answer:
Correct answer:
True
Carrying costs are costs associated with placing an order with either the factory
or a supplier.
Your answer:
Correct answer:
False
The annual cost of ordering depends on the number of orders placed in a year.
This can be reduced by ordering more at one time, resulting in fewer orders but
driving up the inventory level and the annual cost of carrying inventory.
Your answer:
True Wrong Correct
The income statement shows assets, liabilities, and owner's equity.
Your answer:
False Wrong Correct
When inventory is purchased as raw material, it is recorded as a liability.
Your answer:
Correct answer:
False
Financially, inventories are very important to manufacturing companies and
represent ____________ of total assets on the balance sheet.
Your answer:
20% to 60% Wrong Correct
__________ are purchased items received that have not entered the production
process. They include purchased materials, component parts, and
subassemblies.
Your answer:
MRO supplies Wrong Incorrect
Correct answer:
Raw materials
___________ include hand tools, spare parts, lubricants, and cleaning supplies
Your answer:
Work-in-process Wrong Incorrect
Correct answer:
MRO supplies
Inventory serves as a buffer between:
Your answer:
Supply and demand Wrong Incorrect
Correct answer:
All of the above
__________ inventory is held to cover random unpredictable changes in supply
and demand or lead time.
Your answer:
Fluctuation Wrong Correct
_______is a measure of customer service.
Your answer:
Percentage of line items shipped on schedule Wrong Incorrect
Correct answer:
All of the above
Storing inventory requires ___________________ and as inventory increases, so do
these costs.
Your answer:
space and workers Wrong Incorrect
Correct answer:
space, workers, and equipment
Liabilities are obligations or amounts owed by a company and include:
Your answer:
All of the above Wrong Correct
The risks in carrying inventory are:
Your answer:
Pilferage and deterioration Wrong Incorrect

Correct answer:
Obsolescence, damage, pilferage, and deterioration
________ is the costs incurred in the process of making revenue.
Your answer:
Cost of goods sold Wrong Incorrect
Correct answer:
Expenses
The lot-for-lot rule specifies the number of units to be ordered each time an order
is placed for an individual item or SKU and is usually arbitrary.
Your answer:
False Wrong Correct
The EOQ will decrease as the annual demand (A) and the cost of ordering (S)
increase.
Your answer:
False Wrong Correct
The cost of ordering (S) is either the cost of placing a purchase order or the cost
of placing a manufacturing order.
Your answer:
Correct answer:
True
Just-in-time manufacturing emphasizes increases of setup time.
Your answer:
Correct answer:
False
When material is purchased, suppliers often give a discount on orders under a

certain size.
Your answer:
False Wrong Correct
The EOQ formula depends on the cost of ordering and the cost of carrying
inventory.
Your answer:
Correct answer:
True
The economic-order quantity attempts to maximize the total cost of ordering and
carrying inventory and is based on the assumption that demand is uniform.
Your answer:
Correct answer:
False
The EOQ model assumes that replenishment occurs all at once.
Your answer:
True Wrong Correct
A full load for transport costs more per ton to ship than a part load.
Your answer:
Correct answer:
False
Following JIT methods, the replenishment quantity of an item is adjusted to
match the demand of the next operation in the supply chain.
Your answer:
Correct answer:
True
The objectives of inventory management are:
Your answer:
To reduce the sum of all costs involved Wrong Incorrect
Correct answer:
Both of the above
Two white shirts in the same inventory but of different sizes or styles would be
__________ SKU(s).
Your answer:
five Wrong Incorrect
Correct answer:
two
A lot or batch is:
Your answer:
A quantity sharing the same production specifications Wrong Incorrect
Correct answer:
All of the above
____________ rules specify the number of units to be ordered each time an order is
placed for an individual item or SKU.
Your answer:
Stock-keeping unit Wrong Incorrect
Correct answer:
Fixed-order quantity
An assumption of EOQ is:
Your answer:
Demand is unknown. Wrong Incorrect
Correct answer:
An item is purchased in lots or batches.

In the EOQ formula, the variable A represents:
Your answer:
Ordering cost in dollars per order Wrong Incorrect
Correct answer:
Annual usage in units
In the EOQ formula, the variable Q represents:
Your answer:
Ordering quantity in units Wrong Correct
The EOQ can be calculated in:
Your answer:
Both monetary and physical units Wrong Correct
Sometimes order size is constrained by package size. For example, a supplier
may ship only in skid load lots. In these cases the unit used should be the
minimum package size. This represents the consideration of:
Your answer:
Minimum order Wrong Incorrect
Correct answer:
Multiples
The period-order quantity lot-size rule is based on the same theory as the
economic order quantity. It uses the EOQ formula to calculate an economic time
between orders by:
Your answer:
Summing the EOQ and the demand rate Wrong Incorrect
Correct answer:
Dividing the EOQ by the demand rate
If stock is not reordered soon enough, there will be a stockout and a potential
loss in customer service.
Your answer:
Correct answer:
True
In industry there are many inventories that involve a large investment and have
high stockout costs. Controlling these inventories requires effective reorder
systems.
Your answer:
Correct answer:
True
When the quantity of an item on hand in inventory falls to a predetermined level,
called an order point, an order is placed.
Your answer:
True Wrong Correct
The order point is determined by the maximum demand during the lead time
Your answer:
Correct answer:
False
Safety stock is a calculated extra amount of stock carried and is generally used
to protect against quantity uncertainty.
Your answer:
Correct answer:
True
The normal distribution has few values clustered near a central point with
progressively more results occurring away from the center.
Your answer:

Correct answer:
False
It is important to note that deviations in demand are not for the same time
intervals as the lead time.
Your answer:
Correct answer:
False
The variation or dispersion of actual demands about the average refers to how
closely the individual values cluster around the mean or average.
Your answer:
Correct answer:
True
Usually, there are many items in an inventory, each with different lead times.
Your answer:
Correct answer:
True
If the lead time is zero, the standard deviation of demand is one.
Your answer:
Correct answer:
False
Rules for reordering can include:
Your answer:
Order when needed Wrong Incorrect
Correct answer:
All of the above
Systems used to determine when to order are:
Your answer:
Order point system and periodic review system Wrong Incorrect
Correct answer:
Order point system, periodic review system, and MRP
For a particular item, the average demand is 100 units a week and the lead time
if four weeks. If an order is placed when there are _________ units on hand, on
average, there will be enough stock on hand to last until the new stock arrives.
Your answer:
100 Wrong Incorrect
Correct answer:
400
Why is demand during lead time important?
Your answer:
If demand is greater than expected, there could be a stockout. Wrong Incorrect
Correct answer:
Both of the above
The average inventory for a period is equal to:
Your answer:
Opening inventory plus ending inventory divided by 2 Wrong Correct
The safety stock required depends on:
Your answer:
Frequency of reorder Wrong Incorrect
Correct answer:
All of the above
Stockouts can result in:

Your answer:
Increased sales Wrong Incorrect
Correct answer:
Lost customers
The most common, predictable pattern of the distribution of variation in demand
is:
Your answer:
A scatter plot distribution Wrong Incorrect
Correct answer:
The normal or bell curve
Because inventory is stored in warehouses, the physical management of
inventory and warehousing are connected
Your answer:
True Wrong Correct
In a factory, "stores" perform the same function as warehouses and contain raw
materials, work-in-process inventory, finished goods, supplies, and repair parts.
Your answer:
True Wrong Correct
The cost of operating a warehouse can be broken down into capital and
operating costs.
Your answer:
Correct answer:
True
Usually the largest capital cost in warehouse management is for labor and
equipment.
Your answer:
False Wrong Correct

Although the size of a warehouse can be described in square feet, the capacity
also depends on how high the goods can be stored
Your answer:
True Wrong Correct
Cube utilization means being able to get at the goods wanted with a minimum
amount of work.
Your answer:
False Wrong Correct
Once an order is received, the items on the order must be retrieved from the
warehouse, assembled, and prepared for shipment. All these activities involve
labor and the movement of goods.
Your answer:
True Wrong Correct
The usefulness of an inventory record is indirectly related to its accuracy
Your answer:
Correct answer:
False
Inventory accuracy ideally should be 100%
Your answer:
Correct answer:
True
The primary purpose of a periodic or annual inventory is to satisfy the financial
auditors that the inventory records represent the true value of the inventory.
Your answer:
True Wrong Correct
___________ productivity depends on the type of material equipment handling

used, the location and accessibility of stock, warehouse layout, stock location
system, and the order-picking system used.
Your answer:
material Wrong Incorrect
Correct answer:
Labor
In receiving goods, the warehouse must:
Your answer:
All of the above Wrong Correct
The set of norms of behaviour and attitude in every workplace is:
Your answer:
nationally laid down Wrong Incorrect
Correct answer:
self-evolved
When introducing ourselves, we should use:
Your answer:
only our designation Wrong Incorrect
Correct answer:
both the first name and the surname
In business, when you fail to recall the name of a person met earlier, you can ask
him or her:
Your answer:
to excuse you for forgetting his or her name Wrong Incorrect
Correct answer:
for his or her business card
In business telephone calls, when making a request always use:
Your answer:
direct categorical statements Wrong Incorrect

Correct answer:
the interrogative form
As a host, you would invite visiting foreign guests to a business dinner:
Your answer:
personally, face-to face Wrong Correct
At an Arab business party, alcohol is
Your answer:
served last Wrong Incorrect
Correct answer:
not served at all
In many parts of the world, such as Latin America and India, keeping the eyes
lowered is a sign of:
Your answer:
Timidity Wrong Incorrect
Correct answer:
Respect
In different cultures, colors represent
Your answer:
the same thing Wrong Incorrect
Correct answer:
different things
In business, keep telephone calls very short because the other person may not
be:
Your answer:
paying attention to you Wrong Incorrect
Correct answer:
free to talk to you

People from other countries can be easily put at ease by speaking to them in:
Your answer:
your own language Wrong Incorrect
Correct answer:
their language
Your boss, Ms. Alpha, enters the room when you're meeting with an important
client, Mr. Beta. You rise and say "Ms. Alpha, I'd like you to meet Mr. Beta, our
client from San Diego." Is this introduction correct?
Your answer:
Yes Wrong Incorrect
Correct answer:
No
At a social function, you meet the CEO of an important Japanese corporation.
After a brief chat, you give him your business card. Is this correct?
Your answer:
Yes Wrong Incorrect
Correct answer:
No
You're entering a cab with an important client. You position yourself so the client
is seated curbside. Is this correct?
Your answer:
Yes Wrong Correct
You're hosting a dinner at a restaurant. You've pre-ordered for everyone and
indicated where they should sit. Are you correct?
Your answer:
Yes Wrong Correct
A toast has been proposed in your honor. You say "thank you" and take a sip of
your drink. Are you correct?
Your answer:
No Wrong Correct
You're in a restaurant and a thin soup is served in a cup with no handles. To eat it
you should:
Your answer:
eat half of it with a spoon and drink the remainder Wrong Incorrect
Correct answer:
use the spoon provided
You're at a dinner and champagne is served with the dessert. You simply can't
drink champagne yet know the host will be offering a toast. Do you:
Your answer:
ask the waiter to pour water into your champagne glass instead Wrong Incorrect
Correct answer:
say nothing and allow the champagne to be poured
You're at a table in a restaurant for a business dinner. Midway through the meal,
you're called to the telephone. What do you do with your napkin?
Your answer:
Fold and place it to the left of your plate Wrong Incorrect
Correct answer:
Leave it on your chair
You're hosting a dinner party at a restaurant. Included are two other couples, and
your most valuable client and his wife. You instruct the waiter to:
Your answer:
serve your spouse first Wrong Incorrect
Correct answer:
Both (b) & (c) above
You're invited to a reception and the invitation states "7:00 to 9:00 PM." You
should arrive:
Your answer:
at 7:00 PM Wrong Correct

You're greeting or saying good-bye to someone. When's the proper time to shake
their hand?
Your answer:
At their home Wrong Incorrect
Correct answer:
All of the above
You're talking with a group of four people. Do you make eye contact with:
Your answer:
just the person to whom you're speaking at the moment? Wrong Incorrect
Correct answer:
each of the four, moving your eye contact from one to another?
The waiter's coming toward you to serve wine. You don't want any. You turn your
glass upside down. Are you correct?
Your answer:
No Wrong Correct
When you greet a visitor in your office, do you:
Your answer:
say nothing and let her sit where she wishes? Wrong Incorrect
Correct answer:
tell her where to sit?
You're invited to dinner in a private home. When do you take your napkin from
the table and place it on your lap?
Your answer:
Wait for the host to take his napkin before taking yours? Wrong Incorrect
Correct answer:
(b),(c) & (d) are ok
You're scheduled to meet a business associate for working lunch and you arrive a
few minutes early to find a suitable table. 30 minutes later your associate still
hasn't arrived. Do you:
Your answer:
order your lunch and eat? Wrong Correct
You've forgotten a lunch with a business associate. You feel terrible and know
he's furious. Do you:
Your answer:
write a letter of apology? Wrong Incorrect
Correct answer:
call and set up another appointment after apologizing?
You approach a revolving door with your client. Who goes through first?
Your answer:
Your Guest Wrong Incorrect
Correct answer:
Depends
Is this an appropriate introduction: Mr. Client Jones, I would like to introduce to
you, Mrs. Boss Smith?
Your answer:
Yes Wrong Correct
What is considered comfortable personal and business conversation space
when standing and talking with your North American client?
Your answer:
1 foot Wrong Incorrect
Correct answer:
3 to 4 feet
At lunch with your best client, you bite into a piece of meat that is tough and
very difficult to chew, you:
Your answer:
Pretend to wipe your mouth and deposit into your napkin Wrong Incorrect
Correct answer:
Use two fingers or your fork to remove it and place it on the edge of your plate
underneath a piece of parsley.
When you sit down to a hosted business dinner table set for 10, it is correct to
start eating when:
Your answer:
Most of the guests are seated Wrong Incorrect
Correct answer:
The host picks up his or her napkin
You are dining with an important client. You accidentally drop your fork on the
floor. What do you do?
Your answer:
Pick it up, wipe it off, and use it. Wrong Incorrect
Correct answer:
Leave it on the floor and ask the server to bring you another one.
A woman's handbag, if it's small, may be placed on:
Your answer:
A desk. Wrong Incorrect
Correct answer:
None of the above
May I send an E-mail as a thank-you after a business dinner?
Your answer:
Yes Wrong Correct
When your client is late for lunch, how long should you wait before calling and
how long before leaving the restaurant?
Your answer:
Call after 15 minutes, leave after 30 minutes Wrong Correct

Your client meeting is scheduled for 9:00 am. What time should you arrive for
your appointment?
Your answer:
No more than thirty minutes prior to the meeting time Wrong Incorrect
Correct answer:
Not earlier than 8:50.
In many African countries, high level officials and business executives expect to
be treated with the same solemnity and respect due their position. What
communication style best describes this particular protocol?
Your answer:
honesty versus harmony Wrong Incorrect
Correct answer:
business etiquette
When is it appropriate to take a cell phone call during a business lunch?
Your answer:
When you excuse yourself from the table and talk in another part of the
restaurant Wrong Incorrect
Correct answer:
Never
In a business situation, what should you do when someone gives you their
business card?
Your answer:
Say "thank you" and quickly add it to your stack of cards Wrong Incorrect
Correct answer:
Immediately offer up one of yours, even if you don't have any on you (in that
case, offer to mail one)
What is one of the problems in business today that result from poor listening
skills?
Your answer:
Broken relationships Wrong Incorrect

Correct answer:
All of the above
Youre attending a conference and youd like to have the card of a senior
executive you meet. How do you get it?
Your answer:
You tell them you need their card so you can remember their name. Wrong
Incorrect
Correct answer:
You create an opportunity and establish rapport with them and develop a specific
reason for them to ask you for your card in hopes they will offer you theirs.
When making an entrance into an office with people working at their desks, its
always best to:
Your answer:
Do your best to not draw attention to yourself. Wrong Correct
If you want to make a good impression on a senior executive when you meet
them for the first time, its best to:
Your answer:
Greet them and tell them about the project youre working on so theyll know
what you are doing for the company. Wrong Incorrect
Correct answer:
Appear pleasant and make brief short sentences that focus on them and wait for
them to reply.
When making a business introduction between two people, the most important
rule to remember is:
Your answer:
Say your own name before introducing the two people Wrong Incorrect
Correct answer:
Use the name of the most important person first in the introduction
For leading a successful business meeting, your number one priority is:
Your answer:
Making sure you have good attendance and participation. Wrong Incorrect
Correct answer:
Creating tasks and accomplishing the agenda in the allotted time.
When giving a compliment, its best to:
Your answer:
Compliment specific behaviours regarding work, avoid personal compliments
Wrong Correct
Regarding criticism in the workplace, remember to:
Your answer:
Give criticism privately so it wont embarrass anyone. Wrong Incorrect
Correct answer:
Offer a patient critique and never criticize anyone.
Humour in the workplace is:
Your answer:
A great way to occasionally break the stress during a business day. Wrong
Incorrect
Correct answer:
All of the above.
Anger is a complex emotion that occasionally surfaces in the workplace. When it
does, the best way to deal with anger is to:
Your answer:
Train yourself to deal with anger and dont express it during working hours.
Wrong Incorrect
Correct answer:
Find outlets for your anger such as a walk during lunch, journaling, counting to
ten. If you cant resolve your anger, get help.
Office gossip destroys careers, however, if youre only listening to gossip:
Your answer:
You are not guilty of gossiping, after all, you were just listening and not passing it
on. Wrong Incorrect
Correct answer:
Youre just as guilty as the one who is telling you gossip.
If you walk into the office of a person you do not know, do you offer to shake
their hand?
Your answer:
Yes. Its important to be a gracious guest when entering someones office Wrong
Incorrect
Correct answer:
No. You enter their office slowly (with a pleasant expression on your face) and
wait for them to offer to shake your hand; only then do you extend your hand for
a handshake.
If you are seated and someone approaches and offers to shake your hand, you
should:
Your answer:
Raise yourself slightly from your chair and shake the persons hand. Wrong
Incorrect
Correct answer:
Stand up and shake the persons hand
If you are considered a junior officer in your company and approach a senior
officer, do you offer to shake hands?
Your answer:
No. You wait for the senior officer to initiate the handshake. Wrong Correct
When dealing with corporate politics, its usually best to:
Your answer:
Let people know where you stand on issues, so you can work toward what it is
that you believe. Wrong Incorrect
Correct answer:
Respect all peoples opinions and treat everyone fairly to help make the best
decision for the success of the company.
Making small talk is vital for conducting business today because it:
Your answer:
Gives people an insight into your character. Wrong Incorrect
Correct answer:
All of the above.
If you are running late for an appointment because your boss has called a last
minute meeting, its best to:
Your answer:
Call immediately and reschedule the meeting for a later time or another day.
Wrong Correct
When youve been left in a waiting room for someone to come and collect you
and take you to their office:
Your answer:
Use that time to look over the reports youve brought with you to give to them.
Wrong Incorrect
Correct answer:
Do nothing except wait expectantly for the person to come and collect you.
Once you are in someones personal office, you can create a level of rapport by:
Your answer:
Asking them questions about their specific job function for their company Wrong
Incorrect
Correct answer:
Make comments about the building, facility or some aspect of their office.
When you are a guest in someones office, it is best to:
Your answer:
Be brief. Offer them leave-behinds. Follow up when you say you will. Wrong
Correct
Someone in your office uses a wheelchair. When speaking to them, you:
Your answer:
Sit down so that you are at eye level with them so they wont strain their neck.
Wrong Correct
If you know that an individual operates on an auditory channel and you want to
let them know about an upcoming meeting, what would you say to them?
Your answer:
If you look closely, I think youll see the meeting is in the Oak Room. Wrong
Incorrect
Correct answer:
I hear the meetings in the Oak Room. Ive heard it has great acoustics.
If an important call comes in when you are at a business lunch:
Your answer:
Take the call at the table and try to be quiet so you wont disturb the other diners
during the call. Wrong Incorrect
Correct answer:
Tell your associates at lunch that youre expecting an important call, put your
phone on vibrate mode and when the call does come, excuse yourself, leave the
table and go to a place where no one can hear you. When you return to the
table, thank your guest for allowing you to take the call and dont apologize or
talk about the nature of the call.
To master the art of networking
Your answer:
Always take plenty of information with you about your product or service to take
advantage of making a good sale or a promising business connection. Wrong
Incorrect
Correct answer:
Take cards and talk to people with whom you might develop a meaningful and
mutually beneficial relationship over time and who might eventually buy or refer
your companys product or services.
Person to person conversations are conveyed in three ways, vocal, visual and
verbal, according to professor of psychology Albert Mehrabian of UCLA. Which of
the three elements has the greatest impact?
Your answer:
Vocal Wrong Incorrect
Correct answer:
Visual
Should you announce all present when using a speaker phone before a
conversation begins?
Your answer:
Yes Wrong Correct
Is holding private conversations in office bathrooms, elevators and other public
spaces while at work okay?
Your answer:
Yes Wrong Incorrect
Correct answer:
No
If you have not been introduced, do you introduce yourself?
Your answer:
No Wrong Incorrect
Correct answer:
Yes
If you have forgotten someones name, is it okay to approach them, start talking
and not ask?
Your answer:
Yes Wrong Incorrect
Correct answer:
No
Should cell phones be turned off during a meeting even if you are expecting a
call?
Your answer:
Yes Wrong Correct
Logout
SAP Material Management MCQ

Which of the following stock types can be counted through Physical Inventory
procedure?
(more than one answer can be correct)
A Unrestricted use stock.
B Block stock.
C Quality Inspection stock.
D Vendor consignment stock.
E In-transit stock.
Answer - A,B,C,D
Which of the following can possibly influence the valuation price of a moving
average priced material?
A Goods receipt for a purchase order.

B Goods Issue to a cost centre.
C Invoice verification against a purchase order.
D Stock transfer between two storage locations in the same plant.
E Transfer posting from unrestricted use stock to quality inspection.
Answer - A,C
In the SAP system a user can operate in the following hierarchies.

A Service level.
B Application level.
C Main menu level.
D Month.
E Total stock value.
Answer - D, E
Your planning department is using a Forecast Model for materials planning. It has
been established that while demand for the particular material is projected to
increase steadily as market share is increased, the fluctuating tourist demand
will affect the overall requirements. Which forecast model will best address this
requirement?
(Only one answer is correct)
A The Constant model.

B The Constant trend model.
C The Seasonal trend model.
D The Fluctuating trend model.
E The Seasonal model.
Answer - C
In the SAP system, the reference document used in the purchasing cycle is the:
(Only one answer is correct)
A Purchase requisition.
B Info record.
C Source list.
D Purchase Order.
E None of the above.
Answer - D
True / False
What purpose does invoice verification serve in materials management?
a It allows invoice that do not originate in materials procurement to be

processed.
b Completes the materials procurement process
c Handles the payment
d Allows credit memos to be processed
e Handles the analyses of invoices.
Answer - B
What are the tasks of invoice verification?
a Entering invoices and credit memos received.

b Checking the accuracy of invoices
c Executing the account posting resulting from invoice
d Updating open items and material prices
e Checking invoices that were blocked.
Answer - A,B,C,E
What is the process of invoice verification?
a Purchase order, service or GR referenced for incoming invoice.

b Invoice items suggested by the system against referenced document
c Corresponding automatic account postings carried out.
d Payment proposal list for vendor generated.
Answer - A
From where does the system pick the default quantity of an item when you post
invoice receipt?
a Invoice
b Purchase order
c Purchase order history

d System settings
e Vendor master
Answer - C
During invoice verification the system picks the rate at which tax is calculated
from the vendor master record.
TRUE
FALSE
Answer - False .
Tips by : Dipak Kumar
Fast links:
Other SAP MM Questions
Interview Questions on SAP MM

Sample Questions and Answers for SAP MM Exams
Get help for your SAP MM problems
Do you have a SAP MM Question?
SAP Books
SAP Certification, Interview Questions, Functional, Basis Administration and ABAP
Programming Reference Books
SAP Material Management Tips

SAP MM Configuration Tips and Materials Management Discussion Forum
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express written permission of
www.eMaterials Management-Set 1
Materials Management
Select The Blank
Question
________specification are usually flexible and can be altered during consultation
with different manufacturers of the equipment.
Correct Answer
Equipment
Multiple Choice Single Answer

Question
Second bin quantity can be qualified by :Correct Answer
m+LxC
True/False
Question
Continuous stock-taking tends to dislocate the working of store.
Correct Answer
False

Question
Redundant Stock is nothing but :Correct Answer
Worthless for conversion & other use

Question
The cost incurred in providing adequate insurance cover to the materials in
transit and in storage is
Correct Answer
Insurance cost
Select The Blank

Question
Set-up cost for manufactured item in own plant is ________.
Correct Answer
Very high

Question
The buying which is received in staggered lots, each lot at times may equal EOQ
is :Correct Answer
Contract buying

Question
Price of the commodity is conditioned by the forces of supply and demand is :Correct Answer
Demand and supply condition

Question
The submission of the final offers by the prospective sources is :Correct Answer
Firm bidding
Select The Blank

Question
________ of the department refers to the placement of the department in the
structure of the company.
Correct Answer
Status
Select The Blank

Question
Paper work cost is ________.
Correct Answer
Procurement cost
True/False
Question
The trade discount is not allowed as a percentage of published price.
Correct Answer
False
Multiple Choice Multiple Answer

Question
What are the different methods of identifying materials?
Correct Answer
Tagging , Labeling , Engraving

Question
Prices of certain commodity may be fixed by the government and thereby
putting a restriction on both buyer and seller is :Correct Answer
Government restrictions
True/False
Question
Multiple sampling is an extension of the double sampling plan.
Correct Answer
True
Match The Following

Question
Correct Answer
1.Labour management relations

Investigating into suppliers capabilities
2.Technical discussions between the representatives of a buyer and supplier
Techno commercial discussion and trial order
3.Follow up with the supplier until sample submission
Sample validation
4.Type of supplier
Preliminary selection of the suppliers
Select The Blank

Question
Review system-optional replenishment is a modification of ________.
Correct Answer
Fixed-order interval system

Question
Costs involved in materials management are
Correct Answer
Basic cost of materials , Government tax and levies , Ordering cost
True/False
Question
Safety stock forms a fixed portion of inventories.

Correct Answer
True
True/False
Question
Maintenance and repair costs in used equipments are relatively higher.
Correct Answer
True

Question
What are the areas of control to improve profit
Correct Answer
Increase units sold , Increase production , Reducing capital

Question
Main transport documents used by trade are :Correct Answer
RR , LR

Question
Quantity based advance license is based on standard of :Correct Answer
Input-output norms fixed by ALC
Select The Blank

Question
Originating department of daily material receipt report is ________.
Correct Answer
Receiving store

Question
What are the limitations of alpha betical system?
Correct Answer
Repetition of alphabets often leads to confusion and wrong identification , The
selection of proper alphabets for each of the items is difficult. , The codes cannot
be amplified which restricts its use to smaller firms
True/False
Question
Small parcels, Samples, gifts which are received from other countries provisions
of import policy & customs not applied on them.
Correct Answer
False
Select The Blank

Question
Malpractices are ________.
Correct Answer
Manipulations by stores staff
True/False
Question
The registered firms are required to submit security deposit which is required
from unregistered firms.
Correct Answer
False

Question
In instantaneous replenishment system :-
Correct Answer
Item consumption demand rate is constant

Question
Store manager has to ensure security :Correct Answer
Of store buildings , Of stock yards

Question
The process of procurement of raw material, wip, finished goods, jigs, fixtures
and other tools and equipments which are required for the operation and
maintenance of a manufacturing plant is known as
Correct Answer
Purchasing

Question
Receiving inspector should have to :Correct Answer
Segregate defectives , Maintain vendor wise quality records

Question
Identifying the need for source selection and source development is :Correct Answer
Source requirement stage
True/False
Question
Suppliers delivery ratings should be communicated on periodical basis.
Correct Answer
True
Match The Following

Question
Correct Answer
1.Vendor rating
Right source
2.Replenishment method
Right time
3.Competitive bidding
Right price
4.EOQ
Right quantity

Question
EOQ means :Correct Answer
When total cost & right quantity are balanced

Question
The cost incurred in movement of materials from suppliers works to buyers
works is
Correct Answer
Freight cost

Question
Value analysis speaks about :Correct Answer
Cost improvement , Improvement in quality

Question
Advantages of fixed price agreements are :Correct Answer
They are easy to administer , They give certainty to the buyer who knows from
the start, amount he has to pay for the goods/services. , They protect buyer from
possible financial risks from price escalations

Question
Main information in the bill of material is :Correct Answer
Part no. , Material specification , Quantity per assembly
Select The Blank

Question
________ is responsible for purchase of goods of right quality, quantity, time, price
and source.
Correct Answer
Purchase division

Question
The system not only should identify and classify all the existing items and it
should have enough extra unassigned codes to absorb future items is called as :Correct Answer
Flexibility

Question
Purchasing today is no longer just a commercial activity but it is a techno
commercial activity. This is known as :-
Correct Answer
Changing nature of purchases
True/False
Question
Black listing may be for a limited period or for an indefinite period.
Correct Answer
True

Question
Actions involved in sample validation are :Correct Answer
Follow up with the supplier until sample submission , Sample inspection ,
Feedback on defects and defect preventionrpgreat.com or the content authors.
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TQM Wrong Incorrect

The objectives in developing an MRP include:

Question #82 (1 point)

Question #87 (1 point)

The inputs needed for a CRP include:

Question #109 (1 point)

run time Wrong Incorrect

Functional analysis Wrong Incorrect

Pilferage and deterioration Wrong Incorrect

When material is purchased, suppliers often give a discount on orders under a

An item is purchased in lots or batches.

True Wrong Incorrect

Stockouts can result in:

Question #203 (1 point)

___________ productivity depends on the type of material equipment handling

direct categorical statements Wrong Incorrect

Question #220 (1 point)

at 7:00 PM Wrong Correct

Question #247 (1 point)

Broken relationships Wrong Incorrect

SAP Material Management MCQ

A Goods receipt for a purchase order.

In the SAP system a user can operate in the following hierarchies.

E Total stock value.

A The Constant model.

What purpose does invoice verification serve in materials management?

a It allows invoice that do not originate in materials procurement to be

What are the tasks of invoice verification?

a Entering invoices and credit memos received.

What is the process of invoice verification?

a Purchase order, service or GR referenced for incoming invoice.

c Purchase order history

Tips by : Dipak Kumar

Interview Questions on SAP MM

SAP Material Management Tips

Multiple Choice Single Answer

Multiple Choice Single Answer

Multiple Choice Single Answer

Select The Blank

Multiple Choice Single Answer

Multiple Choice Single Answer

Multiple Choice Single Answer

Select The Blank

Select The Blank

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Match The Following

1.Labour management relations

Select The Blank

Multiple Choice Multiple Answer

Safety stock forms a fixed portion of inventories.

Multiple Choice Multiple Answer

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Select The Blank

Multiple Choice Multiple Answer

Select The Blank

Multiple Choice Single Answer

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Multiple Choice Multiple Answer

Multiple Choice Single Answer

Match The Following

Materials Management & Business Ettiquette

Materials Management & Business Ettiquette